ACCA AA · Chapter 3 · Question 7 of 8
Under ISA 610 Using the Work of Internal Auditors, which of the following is NOT one of the matters the external auditor evaluates in deciding whether the work of the internal audit function can be used?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The size of the internal audit budget relative to the entity's revenue
Explanation
ISA 610 requires the external auditor to evaluate the objectivity of the internal audit function, its competence, and whether it applies a systematic and disciplined approach. The size of its budget is not in itself a criterion: a small but objective and competent function may be usable, while a large one may not.
More Internal audit MCQs
- Q1Which of the following correctly distinguishes internal audit from external audit?
- Q2Which of the following assignments would be appropriate for an internal audit function to perform?
- Q3Which of the following arrangements would best support the independence of the internal audit function?
- Q4Which of the following is an advantage of outsourcing the internal audit function?
- Q5Ferrule Co is a listed company. Its external audit firm has offered also to provide the company's outsourced internal audit service…